Russia has potential for zinc consumption

Vladislav Polkin, CEO of the National Coordination Center for Zinc Development (NKC), spoke at the 20th International Conference "Galvanized and Coated Steel: Production and Consumption Trends," organized by the “Metal Supply and Sales” Magazine, about trends in the global and Russian zinc markets. The speaker noted a positive trend in the global economy, including in Russia, where economic indicators for the past year appear quite successful.

Globally, the end-use consumption of zinc is distributed as follows: 50% in construction, 15% in infrastructure, and 20% in automotive production. Thus, over 75% of zinc worldwide is used for corrosion protection. China is the global leader in zinc production and consumption, meaning a significant portion of forecasts is tied to its economy.

Zinc prices on the global market remain relatively stable, though in Russia, price volatility is more dependent on the US dollar exchange rate. Currently, there are no major price trends on the global market due to a lack of prerequisites to the demand growth. It is worth noting that fluctuations in zinc prices directly affect production costs, particularly in automotive production, where galvanized sheet competes with aluminum rolled products. In the future, rising purchasing power in China and India may drive increased use of galvanized steel, including in construction sectors in developing countries.

In Russia, a new zinc production plant with a capacity of up to 120,000 tons per year will be launched this year in Verkhniy Ufaley, which will fully eliminate the domestic market’s deficit of zinc. Additionally, the Chelyabinsk Zinc Plant has postponed the reconstruction of its production facilities, which is seen as a positive signal for the market.